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Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand:

Price    Demand
$20     6,875
$19     8,800
$18     10,000
$17     11,000

What price should Jackson charge in order to maximize its profit?

a) $19

b) $20

c) $18

d) $17

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9793170

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